New Bill: Senator Mike Crapo introduces S. 199: United States-Taiwan Expedited Double-Tax Relief Act

We have received text from S. 199: United States-Taiwan Expedited Double-Tax Relief Act. This bill was received on 2025-01-23, and currently has 21 cosponsors.

Here is a short summary of the bill:

The United States-Taiwan Expedited Double-Tax Relief Act is a legislative proposal designed to amend existing tax laws to benefit certain residents of Taiwan who earn income in the United States. Here are the main points of the bill:

Objectives of the Act

• 
  
  Reduced Withholding Rates:
  
  The act aims to establish lower withholding taxes on specific types of income earned by Taiwanese residents in the U.S., making it more favorable for them to invest and earn wages.
  


• 
  
  Special Treatment for Investment Income:
  
  Investment income from U.S. sources received by Taiwan residents may receive preferential tax treatment under the new provisions, further incentivizing cross-border investment.
  


• 
  
  Wages and Business Income:
  
  The act intends to streamline tax obligations on wages and business profits for Taiwanese individuals and enterprises operating in the U.S.
  

Bilateral Agreements

While the U.S. cannot establish a formal tax treaty with Taiwan due to its political status, the act seeks to enable reciprocal tax agreements that provide bilateral tax relief to residents of both regions. However, such agreements would still be subject to the approval of legislative bodies in both the U.S. and Taiwan.

Negotiations with Other Countries

The U.S. will continue to negotiate tax conventions with other sovereign nations while pursuing additional tax arrangements that might benefit residents of Taiwan in their dealings with the American tax system.

Impacts on Taxation

This proposed legislation represents a significant move towards simplifying tax obligations and enhancing economic cooperation between the U.S. and Taiwan. By establishing clearer tax guidelines and incentives, it aims to strengthen economic ties and facilitate greater investment opportunities.

Relevant Companies

• 
  None found
  

This article is not financial advice. See Quiver Quantitative's disclaimers for more information.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.